According to the Oil and Gas Journal, Iraq contains 110 trillion cubic feet (Tcf) of proven natural gas reserves, along with roughly 150 Tcf in probable reserves. About 70 percent of Iraq's natural gas reserves are associated (i.e., natural gas produced in conjunction with oil), with the rest made up of non-associated gas (20 percent) and dome gas (10 percent).

 

Until 1990, all of Iraq's natural gas production was from associated fields. In 2002, Iraq produced 53 billion cubic feet (Bcf) of natural gas, down sharply from 215 Bcf in 1989. Since most of Iraq's natural gas is associated with oil, progress on increasing the country's oil output will directly affect the gas sector as well. Most associated gas is simply flared off. Significant volumes of gas also are used for power generation and reinjection for enhanced oil recovery efforts.

Main sources of Iraqi associated natural gas are the Kirkuk, Ain Zalah, Butma, and Bay Hassan oil fields in northern Iraq, as well as the North and South Rumaila and Zubair fields in the south. The Southern Area Gas Project was completed in 1985, but was not brought online until February 1990. It has nine gathering stations and a larger processing capacity of 1.5 billion cubic feet per day.

 

Prior to the war, natural gas gathered from the North and South Rumaila and Zubair fields was carried via pipeline to a 575-million-cubic-foot-per-day (Mmcf/d) natural gas liquids (NGL) fractionation plant in Zubair and a 100-Mmcf/d processing plant in Basra. At Khor al-Jubair, a 17.5-million-cubic-foot LPG storage tank farm and loading terminals were added to the southern gas system in 1990.

 

After the 2003 war, gas gathering and treatment facilities in southern Iraq reportedly deteriorated to the point that most gas produced in the area was simply flared off. Iraq is looking at plans for increasing associated natural gas processing capability in Zubair and West Qurna and to reduce gas flaring.

Iraq's only non-associated natural gas production is from the al-Anfal field (200 Mmcf/d of output) in northern Iraq. Al-Anfal production, which began in May 1990, is piped to the Jambur gas processing station near the Kirkuk field, located 20 miles away. Al-Anfal's gas resources are estimated at 4.5 Tcf, of which 1.8 Tcf is proven.

 

In December 2001, Russia's Gazprom reportedly was negotiating possible development of al-Anfal. In November 2001, a large non-associated natural gas field reportedly was discovered in the Akas region of western Iraq, near the border with Syria, and containing an estimated 2.1 Tcf of natural gas reserves. It is not clear whether the field is associated or non-associated.

Iraq has a major natural gas pipeline with the capacity to supply around 240 MMcf/d to Baghdad from the West Qurna field. The 48-inch line was commissioned in November 1988, with phases II and III of the project never completed due to war and sanctions.

 

The last two phases of the pipeline project were meant to supply Turkey (which now has little need for the gas due to an oversupply in that country). Iraq's Northern Gas System, which came online in 1983, was damaged during the Gulf War as well as by the Kurdish rebellion of March 1991. The system supplied LPG to Baghdad and other Iraqi cities, as well as dry gas and sulphur to power stations and industrial plants. Iraq also has a Southern Gas System, which came online in 1985.

Iraq plans to increase its natural gas output in order to reduce dependence on oil consumption, to use for petrochemicals production, and possibly for export at some point. Prior to the 1990/1991 Gulf War, Iraq exported significant volumes of natural gas to Kuwait. The gas came from Iraq's southern Rumaila field through a 40-inch, 100-mile, 300 Mmcf/d pipeline to Kuwait's central manifold at Ahmadi. The gas was used in Kuwaiti electric power stations and liquefied petroleum gas (LPG) plants. Currently, Kuwait and Iraq are making plans to restart the pipeline.

 

A memorandum of understanding between the two governments was concluded in December 2004. The first phase of the project is modest, involving only 35 Mmcf/d, which would be transported through the existing pipeline. The second phase would involve an $800 million investment in refurbishment of the pipeline and associated pumping stations, which would allow the volume to increase to 200 Mmcf/d. For the time being, though, the security situation in Iraq has prevented even the first phase of the plan from being implemented.

In addition, Iraq and Kuwait have discussed joint development of the Siba natural gas field which straddles the two countries border near Iran. Prior to the war, Iraq had even been developing plans to build a liquefied natural gas (LNG) terminal. In late September 2004, Iraq reportedly agreed to join the Arab Gas Pipeline project linking Egypt, Jordan, Syria and Lebanon.

Source: Energy Information Administration